How to Start an LLC in Massachusetts

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How to Form an LLC in Massachusetts | Complete Guide
A Step-by-Step Guide

How to Form an LLC in Massachusetts

Forming an LLC is one of the easiest and most secure methods of structuring your business while keeping your assets safe, in case your business gets sued. That being said, filing one without experience can be a daunting and lengthy endeavor. Follow our comprehensive guide to ensure a smooth and efficient process for establishing your Massachusetts LLC.

Key Benefits

1

Personal Asset Protection

An LLC or 'limited liability company' is an American business form that gives the owners some legal protection by not holding them personally responsible for the legal obligations or debts of the company.

2

Tax Flexibility

LLCs offer pass-through taxation by default, meaning business income passes through to your personal tax return, avoiding double taxation while providing options for how you're taxed.

3

Management Freedom

Massachusetts LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

Formation Process

Select a Distinctive Name for Your Massachusetts LLC

Selecting a name for your Massachusetts LLC is not as simple as it seems. To start with, you will require an original and unique name that is not already in use by any other company in Massachusetts. The search results must indicate 'No Matching Entries Found,' which informs you that you can go ahead with your desired LLC name.

  • Required Words: Your name must feature 'Limited Liability Company' or at least a shortened version of the whole term such as 'LLC,' 'L.L.C.,' 'Limited,' 'Ltd.,' 'Company,' or 'Co.'
  • Prohibited Words: Your LLC business name must not include the following terms: 'Agency,' 'Board,' 'Bureau,' 'Commission,' 'Department,' or 'Municipal'
  • Government Association: The name should not be associated with a government agency, therefore words and phrases such as 'State Department,' 'Treasury,' and 'FBI,' among others, cannot be included
  • Domain Name: We suggest that you look up whether your website URL is available from the beginning, even though you do not have any intention of opening a website for your business at the moment. If you anticipate, you can avoid other companies taking up a URL that can be useful to you in the future.

Choose your Massachusetts Resident Agent

All Massachusetts LLCs are required to appoint a 'Resident Agent.' The role is also known as registered agent in certain states. The individual gets official government mail, tax notices, and legal filings. Part of the job is also filing the required reports to the Massachusetts Secretary of State. They are your LCC's liaison with the Massachusetts government, briefly.

Agent Requirements

This can be you, another manager within your LLC, or a professional Resident Agent service. If you hire the services and advice of a resident agent service, it is imperative that they be physically located within Massachusetts and be present at all times to receive documents on your company's behalf within regular business hours.

Professional Services

We highly recommend that you hire a professional Resident Agent service. Utilizing a professional service is convenient and guarantees compliance with state regulations. Many business owners prefer this option for the privacy and reliability it offers.

Recommended Resident Agent Services

ZenBusiness

As the name implies, there is no need to sabotage your Zen under the burden of legal terminology – ZenBusiness is one of the most trustworthy registered agent companies in Massachusetts, with thousands of excellent reviews and top ratings. Register your business in less than 10 minutes with ZenBusiness. You can also avail of their registered agent service for $199 and enjoy their worry free compliance service so you can concentrate on operating and expanding your business.

  • Supports LLC structure in all 50 states
  • Worry free compliance service ensuring that your LLC is 100% compliant with all the state requirements
  • Has a 5-star rating on Trustpilot with over 10,000 consumer reviews
Visit Site

Northwest Registered Agent

Northwest Registered Agent is a well-established registered agent service with two decades of experience. They allow you to add a registered agent in multiple states (if your business requires it) and can cover all of your Massachusetts LLC registration needs. They charge $125 annually for Resident Agent services and provide a secure online portal to manage your LLC's documents.

  • Premium registered agent yearly price is $125
  • Supports LLC & corporation formation in all 50 states
  • A+ Better Business Bureau rating
Visit Site

File with the State

After you have completed all the information about your Massachusetts LLC, you can file online or by mail:

Filing Fee

The fee in Massachusetts is $500.

Processing Times

If you filed it through mail, the ideal turnaround time is 4-5 business days. If you filed it online, the processing gets done within 4-5 hours post payment. This can be expedited too if you are willing to pay more.

Filing Options

  • By Mail or In-Person: You can send your documents to:
    Secretary of the Commonwealth
    One Ashburton Place, Room 1717
    Boston, Massachusetts 02108-1512
  • By Fax: 617-624-3891. Fax fillings must also be accompanied by a cover sheet.

Post-LLC Formation Checklist

Congratulations on your LLC! Don't also forget that the process and work don't end here. Following successfully forming your LLC, post guidelines can organize your business, make it seamless, and less complex.

  • Draw the line between business and personal resources: It's advisable to keep your personal properties separate from your LLC. Properties like your home, vehicle, and other personal properties ought not to be combined with your LLC properties.
  • Open your business bank account: It will be simple and appealing to 'borrow' or borrow against your LLC through your account when your LLC needs a cash boost, but do not. Similar to your own funds, your savings and money for personal consumption should be off-limits.
  • Hire a business accountant: A business accountant can keep an eye on and make sure that your business is not paying too much in taxes while, at the same time, ensuring that you don't incur any penalties and other costly tax mistakes.
  • Consider having business insurance: No matter how small your business is currently, growth and expansion are part of the long-term plan. Obtaining business insurance can make you feel safe from any potential risks.

After Formation

Once your LLC is established, take these important steps to maintain good standing and protect your business:

Open a Business Bank Account

It's advisable to keep your personal properties separate from your LLC. Properties like your home, vehicle, and other personal properties ought not to be combined with your LLC properties. This is because, in case your Massachusetts LLC is sued, you can rest assured that your valuable properties are secured and will not be pulled into the scenario.

Get Business Insurance

No matter how small your business is currently, growth and expansion are part of the long-term plan. Obtaining business insurance can make you feel safe from any potential risks. It can help you handle potential lawsuits or even malpractice and other business-caused mistakes. As a responsible and pro-employee organization, you'd also want to consider workers' compensation insurance.

Hire a Business Accountant

A business accountant can keep an eye on and make sure that your business is not paying too much in taxes while, at the same time, ensuring that you don't incur any penalties and other costly tax mistakes. Having one also takes the burden of bookkeeping and payroll off your shoulders. You can concentrate on the other sides of expanding your business.

Consider a Trade Name

Most Massachusetts LLCs require neither a 'Doing Business As' (DBA) nor a trading name. Your LLC's name becomes your brand name, and you are allowed to accept payment using the name of your LLC. Having a DBA is recommended in case you plan to trade under another name.

FAQs

What's the Massachusetts LLC state fee cost to register a new business?

The fee in Massachusetts is $500.

Is a Trade Name mandatory for my business?

Most Massachusetts LLCs require neither a 'Doing Business As' (DBA) nor a trading name. Your LLC's name becomes your brand name, and you are allowed to accept payment using the name of your LLC. Having a DBA is recommended in case you plan to trade under another name.

How long will it take to process my Certificate of Organization?

If you filed it through mail, the ideal turnaround time is 4-5 business days. If you filed it online, the processing gets done within 4-5 hours post payment. This can be expedited too if you are willing to pay more.

May I serve as my own Resident Agent in Massachusetts?

Yes, you can serve as your own Resident Agent in Massachusetts, as long as you have a Massachusetts physical address and are present during regular business hours to accept legal notices. Yet, most businesses use the services of a professional for the convenience and privacy afforded.

Do I need an EIN for my LLC in Massachusetts?

Yes, if your LLC is going to have employees or you wish to have a business bank account, you will need to get an Employer Identification Number (EIN) from the IRS. Even without employees, an EIN is advisable for business operations and tax purposes.

Ready to Start Your Massachusetts LLC?

Take the first step toward establishing your business with the protection and benefits of an LLC structure. By simply following these easy steps, you can properly establish your LLC in Massachusetts and have your business running in no time.

Get Started Today
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